‘It put me in massive credit card debt as I needed to use my credit card for every other expense.’: Can I use a Sallie Mae loan to pay off my credit card debt from grad school without getting into more financial trouble?

Hi Money Minder,

I was totally stressed during my first semester of grad school and had to shell out rent for two places for half a year. It left me drowning in credit card debt since I had to rely on my card for pretty much everything else.

So, I went ahead and applied for Sallie Mae to cover the living expenses I racked up during that rough patch.

Do you think it’s cool to use the Sallie Mae loan to pay off my credit card? After all, that money was technically spent on living expenses during my school days… Any advice?

I’m looking to consolidate my loans and Sallie Mae offers a better interest rate than my credit card. Plus, once I graduate from Physician Assistant/Associate school and get into a government loan forgiveness program, I’ll be making good money. Thoughts?

Farewell, [Seeking Help]

Response from THE MONEY MINDER:

Hello There,

Congratulations on pursuing your education in Physician Assistant/Associate school! It’s unfortunate to hear about the financial challenges you faced in your first semester of grad school. Your proactive step in applying for a Sallie Mae loan to address the credit card debt accumulated during that time is a wise decision.

In regards to using the funds from the Sallie Mae loan to pay off the credit card debt, it’s important to note that typically student loans are intended for educational expenses. However, living expenses during your time in school, especially in such extenuating circumstances, may be eligible for coverage. I recommend reaching out to Sallie Mae directly to inquire about the specifics of using the loan to consolidate and pay off your credit card debt. They will be able to provide detailed information and guidance on how best to utilize the loan for your financial needs.

Considering your plan to work for the government in a loan forgiveness program post-graduation, it’s crucial to create a solid financial plan moving forward. Additionally, consolidating your debt with a lower interest rate through the Sallie Mae loan is a practical step that can help ease your financial burden. Make sure to carefully review the terms and conditions of the loan agreement to ensure you fully understand the implications of consolidating your debt.

Ultimately, taking proactive steps to address your credit card debt and planning for your financial future, especially with your career path in mind, is commendable. It’s essential to stay informed, seek guidance from financial experts if needed, and make informed decisions to ensure your financial well-being. All the best from THE MONEY MINDER as you navigate this financial challenge and work towards a brighter financial future.